Knight AM Grain Futures Comments

AM GRAIN FUTURES COMMENTS Tuesday 4.02.13

Grain futures are trading higher this morning as they consolidate the recent plunge in prices following the USDA stocks report showing more than inventory. Today’s price action is an “inside day”. Corn and beans are recovering a bit of their old crop/ new crop inverse.
World cash markets are trading actively as end users extend coverage. US cash market basis levels are steady at historically high levels. Cash market basis levels for domestic markets are very competitive with export markets, but the nearby export origination bids are firming with the CIF bean bid up 11 and the CIF corn up 3.
Yesterday afternoon the USDA released their first Winter Wheat Quality Index for the season showing Winter Wheat Quality at 85% of normal versus a rating of 98% of normal last year – HRW at 80% and SRW at 102%. Continuing rainfall is crucial for the HRW crop. This week Oklahoma and Texas are receiving well wanted rains to support jointing wheat.
Cool, wet weather continues to delay spring planting in the US, EU and FSU. Rains are also delaying harvest activity in South America.
– Helen Pound

HEADLINES

04/02 06:43a CST DJ South Korea’s FLC Buys Feed Wheat at $297/Ton, C&F –Trader
– August – Eastern European

04/01 11:50p CST DJ South Korea’s FLC Seeks Corn, Wheat, Soymeal as Prices Fall
– May

04/02 05:29a CST DJ Glencore Sells 2 Soymeal Cargoes to South Korea at $483.26/Ton, C&F
– August – South America

04/02 05:17a CST DJ Highest Offer in India PEC’s Wheat Export Tender at $301.88/Ton
– LH April-FH May

04/02 04:55a CST DJ Bangladesh Buys 50,000 Tons Wheat at $313.65/Ton, CIF – Official
– April – India

04/02 06:00a CST DJ South Korea Delivered Feed Corn Import Price Falls 8% Since Friday

04/02 05:36a CST *DJ Noble Sells 120,000 Tons Corn to South Korea at $282.78/Ton, C&F

Dow Jones – Ukraine Spring Grain Planting S